The National Environmental Policy outlines the role of water and water governance across various sectors, as well as the guidelines for addressing these challenges. Agriculture is the largest water user in Sri Lanka and is highly vulnerable to climate change-induced disasters. Agriculture in Sri Lanka uses rainfall, surface water stored in reservoirs, and groundwater. Nevertheless, water availability in Sri Lanka varies spatially and temporally, and variability has been altered or induced recently due to climate change. This chapter assesses the key dimensions of water governance within Sri Lanka’s environmental and agricultural policies and focuses on institutional coordination and policy integration for effective water management, water allocation mechanisms, equitable access, water pollution control measures, climate change adaptation and resilience strategies, and financial sustainability in water management.